- April 19, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
Government is upbeat new revenue measures put in place will help the country raise about GH¢80.3 billion through domestic tax collection to pursue its economic programmes.
As part of measure to increase revenue mobilisation, government has passed the Electronic Transaction levy (E-levy) and the VAT Flat rate scheme for businesses operating with a minimum threshold of GH¢500,000, among other policies.
Speaking to Joy Business after the launch of “Tax and Good Governance” campaign by the Ghana Revenue Authority (GRA), a Deputy Minister for Finance, Abena Osei-Asare said government is hopeful of meeting its revenue target for 2022.
“We have to come together and support the GRA to raises the GH¢80.3 billion. We have supported the GRA to come out with digitised platforms for payment of taxes, filing of taxes, among others,” she said.
Abena Osei-Asare stated that the new measures will improve efficiency and block loopholes in the revenue collection system.
She maintained that all the novel tax revenue measures outlined in the 2022 Budget will yield results by increasing domestic revenue mobilisation.
“We are very sure that we will meet the target due to the measures and systems announced in the 2022 budget. It is important for all of us to help government achieve the target” she stressed.
Pointing out some of the revenue measures introduced in the budget, Abena Osei-Asare, defended the government’s decision to impose a VAT Flat rate on businesses operating with a minimum threshold of GH¢500,000.
The new policy, recently passed by parliament has received some reactions from some tax analysts who have complained that the move is likely to increase the prices of goods on the market, particularly those from malls and supermarkets.
But responding to the issue, the Deputy Finance Minister, said the policy will rather create a level playing field for businesses operating in the country.
“The real intention of the VAT Flat rate is to increase revenue for government, by creating a fair atmosphere for all businesses,” she said, adding, industry players were consulted before the policy was drafted and passed by parliament.
Speaking on the need to file tax returns, the Commissioner-General of GRA, Rev. Dr. Ammishaddai Owusu-Amoah, said there are many benefits of filing tax returns annually.
“What a lot of people don’t know is that when you file your tax returns, you are eligible for some exemptions. Examples are if you are taking care of the aged or have children to a certain number”
Dr. Owusu-Amoah further urged individuals to be tax compliant by filing their tax returns to help government meet its revenue targets.